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Iran’s Sanctions Circumvention Heightens Financial Crime Risks
As international sanctions against Iran have been gradually lifted, concerns over financial crime risks in the country have intensified. The Iranian government has long relied on intermediaries and agents to conduct business overseas, often with ties to politicians and clerics. This reliance has led to a proliferation of high-profile corruption cases and allegations.
The Unique Environment
Decades of economic isolation have created a unique environment in Iran, where bribery is a widespread cultural practice. Kickbacks, inflated or undervalued asset sales, and secret commissions are common forms of bribery, often favoring the politically connected.
The Petroleum Industry
The use of intermediaries by foreign companies has been closely linked to bribery in Iran’s petroleum industry. Notable examples include:
- The IOEC oil rig scandal
- The Crescent Petroleum case
- The Statoil corruption case
Foreign companies have allegedly bribed public officials to secure contracts and tenders, highlighting the need for enhanced due diligence on business partners, third-party agents, and intermediaries.
Opportunities and Risks
Iran’s re-entry into the global economy presents significant opportunities for foreign investors and businesses. However, the country’s reliance on intermediaries and agents poses substantial financial crime risks.
Companies must navigate a complex web of corruption and bribery to succeed in Iran’s business environment. The use of third-party agents with ties to government officials is common practice, increasing the risk of financial crime and sanctions violations.
Aperio Intelligence: Expertise in Financial Crime Risk Management
Aperio Intelligence, a corporate intelligence and financial crime advisory firm based in London, specializes in conducting enhanced due diligence on high-risk customers and third parties. Our team has decades of collective experience advising clients on financial crime and intelligence gathering, helping them to manage risk and maximize potential.
Contact us today to learn how we can help you navigate the complex Iranian business environment and mitigate financial crime risks.
About Aperio Intelligence
Aperio Intelligence is a corporate intelligence and financial crime advisory firm based in the City of London. We provide tailored training and advisory services relating to financial crime, including anti-money laundering and sanctions compliance. Our clients include leading regulated financial institutions and corporations.